What to do and avoid when applying for an online personal loan

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Emergencies of any kind, especially those that require immediate medical attention, can catch you off guard and off guard. While diving into your savings is always an option, chances are you may not have everything you need. Luckily, you can get an online personal loan to deal with those unplanned expenses in a timely manner. Because it is an unsecured character, you can get an online personal loan in 24 hours or less if you choose a lender that has end-to-end digital processes, simple eligibility criteria, and minimal documents required for personal loan approval required are.

Although an online personal loan has many advantages, remember that not all personal loan offers are created equal and choosing the right lender is crucial. There are certain factors that you need to consider in order to get one Instant Personal Loan fast and hassle free. To help you with that, here is a list of do’s and don’ts to follow.

Things you need to do when applying for a personal loan

Find out why you need an online personal loan

Unlike other loans like home loans or car loans, you can get an online personal loan to solve a liquidity crisis or to achieve a goal, with no usage restrictions.

Generally, borrowers take out an online personal loan to deal with either large expenses like moving to a new city, treatment costs during a medical emergency, or debt consolidation.

However, if you fail to pay your EMIs on time or default on repayments, it can affect your CIBIL score, which will affect your chances of getting a future loan. So decide why you need a personal loan and plan your repayment ahead of time to keep your finances healthy. Over-indebtedness is not a prudent way to use these funds and can strain your finances.

Check your credit score before applying for a personal loan

An online instant loan is inherently unsecured, which is why your CIBIL score is an important factor during the lender’s verification process. Before applying for a personal loan, it is best to get your credit report and check your CIBIL score. A high score of 750 will help you get quick approval and fast disbursement of the loan amount. In addition, a high CIBIL score ensures that lenders will offer you a more competitive personal loan interest rate and larger loan amount.

Compare lenders to get the lowest interest rate

Always compare the interest rates offered by different lenders to make sure you are getting them Lowest interest rate for personal loans. Even a small reduction in the personal loan interest rate can help you save significantly on your interest expense each month, thereby lowering the cost of the loan. Also check other fees such as processing fees, prepayment fees, interest on arrears and any other fees such as setup fees or bank statement fees.

Pay attention to the details in the loan agreement

It is important that you take the time to read the fine print carefully to ensure that all of the details such as the loan repayment term, repayment schedule and interest charges mentioned are correct. Also, check if there are any additional charges to ensure you are not caught off guard in the future. Some lenders do not mention such fees up front and the only way to know about them is to read the loan agreement.

Review pre-approved offers

Look out for lenders that offer pre-approved or promotional offers for online personal loans. These can be offered by NBFCs, banks or other aggregators and can help you access funds faster and on favorable terms. However, make sure to do your research to avoid falling for shady schemes from unknown loan providers. It is best to do your due diligence to ensure that the lender you choose is reputable and trustworthy.

Things to Avoid When Applying for a Personal Loan

Spend personal loan funds on non-essential expenses

Although there is no limit to the end use of an online personal loan, avoid taking out a personal loan solely to finance luxury goods. Any loan, including a personal loan, requires regular and steady repayment. Failure to repay your personal loan in full by the due date may result in penalty interest in addition to a reduction in your CIBIL score.

Miss your EMIs

Make sure you have a plan to address your EMIs each month and make sure you don’t miss the deadline. If you default on your monthly payments, not only can you be subject to hefty fines, driving up the cost of your loan, but it can also significantly reduce your CIBIL score. If you’re having trouble making repayments because of job loss or other reasons, talk to your lender to restructure the loan terms.

Opt for lenders with gimmicks

If you decide to get an online personal loan, make sure that any promotional offers you see are valid. Some lenders offer low interest rates as a promotional offer, but later charge exorbitant hidden fees that drive up the cost of the loan. It is best to go with a lender with no hidden fees or terms.

Choosing the right lender can be key to an affordable and hassle-free borrowing experience, and you can’t go wrong with a reputable lender like Bajaj Finserv. Bajaj Finserv Personal Loan gives you access to a large loan amount at affordable interest rates. Additionally, with a flexible term of up to 60 months, you can easily repay this loan with minimal paperwork required.

In addition, eligible Bajaj Finserv clients can obtain an instant personal loan without leaving home through a 100% digital process that requires no paperwork. After reviewing a pre-filled pre-approved loan form, you can now get the money in just 20 minutes if you are an existing Bajaj Finserv customer. So, check out your pre-approved offer today to get instant funds to achieve all your goals.

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